Last week Outside In covered key takeaways from the PSFK Perspective on the Retail Future here at:
One of the most compelling frameworks that were presented in that post was the concept of Shopper/Personal Utility, around which Brands and Retailers must try and orient themselves for the 2020s. Here’s a quick recap below:
Retailer Shifts for the 2020s
Move from Historical Profiles to Real-time Conversations
Investment from Targeted Ads to Personal Portals
Transition from Data Personalization to Data Partnership
Pivot from Responsive Storefronts to Anywhere Stores
Emphasis from Retail Experiences to Shopper/Personal Utility
On Shopper/Personal Utility: A mix of advanced computing, delivery logistics and connected technology is powering a hyper-personalized retail experience that has the objective of anticipating and providing exceptional service. The best retailers will guide, meet, anticipate, serve and reward each of their customers in the age of Personal Utility
And, these were the 5-Pillars of Personal Utility
1. Know Me: Empower me with digital tools that allow me to control my shopping experience while continually working to make it even better
2. Inspire Me: Provide me with personalized recommendations and curated content to help me discover and choose the right products for my needs
3. Meet Me: Integrate shopping into my daily life, providing me with access to the goods and services I need in the manner that’s most convenient for me
4. Serve Me: Don’t just sell me a product but provide me with a solution, making my life easier and ensuring I get the most out of my purchase
5. Value Me: Look past my purchases to provide meaningful value that rewards my loyalty and shows me you’re there for the long term
Now, let’s evaluate POCs (Proof of Concepts) by Sports Brands around each one of these Pillars –
1) KNOW ME Solutions
a) Shopper APIs power every Interaction – from Inventory to Transaction – Nike and Footlocker Integrated Digital Experience
Personal Gateways
Logged-In Recognition
Payment Plus
Foot Locker Shoppers Can Use Nike App To Unlock Personalized In-Store Experience: Sportswear brand Nike has partnered with footwear retailer Foot Locker to integrate the NikePlus app into Foot Locker’s in-store experience at the retailer’s digitally focused ‘Power Store’ locations in the US
Foot Locker shoppers can use the NikePlus app to reserve Nike products to try on in store, checkout in store, and access exclusive deals and contests. Although Nike has made its app an integral feature of its own stores, the partnership with Foot Locker is the 1st time it has made the app experience available to another retailer. In-store experiences include a NikePlus "Unlock Box" and a first-of-its-kind NikePlus "Shoecase." Unlock Box will serve as a vending machine where members can unlock free limited edition items, while Shoecase will provide members with early access to coveted sneaker releases
b) Real-time Research will direct Customer Service and Offering – Nike Live Store Inventories
Predictive Merchandising
Computational R&D
Behavioral Heat Mapping
Sales Data Optimization
Nike Live Local Store Inventories Are Determined By The Purchasing Habits Of Digital Shoppers:
In its Nike Live concept stores, the products from sportswear retailer Nike are stocked based on the shopping preferences of local users. Using data collected from its NikePlus app, each store’s merchandising mix is dictated by items local consumers are buying. Every two weeks, the store adds new inventory based on the local market, much faster than brand’s usual turnaround of 30-45 days
Shoppers will also be able to leverage the data to help inform their choices, browsing on in-store screens to see the most popular shoes in a given category for consumers who live near the store. The first Nike Live store, Nike By Melrose, opened in Los Angeles in 2018, followed by stores in Shanghai, New York, Tokyo and a second LA location in 2019. It plans to add 200+ Nike Live Stores in the days to come: https://chainstoreage.com/nike-plans-open-150-200-nike-live-style-stores-over-next-couple-years
2) INSPIRE ME Solutions
a) Discovery & Recommendation served at Right Time, Right Place – On Demand Experts by Curated
Personal Recommendation
Contextual Targeting
Interactive Merchandising
Expert Consults
Curated.com is an online platform that provides consumers with personalized product and experience recommendations for winter sports, golf, cycling and yacht charters from its Community of Experts: Customers get started by answering a couple of basic questions and are matched with the appropriate expert. Users can then discuss their preferences and budgets with their experts via email, video chat, text or a portal on Curated’s website. The expert then sends a list of personalized recommendations, comparing different products and prices, along with insider tips. Curated’s services are free to use, but they ask that customers send feedback and share experiences in order to improve the service
b) Stores will become Media Channels, Delivering Inspiration, Education and Entertainment – Adidas Interactive London Store
Immersive Storytelling
Store as Studio
Participatory Playground
Adidas London Store’s Interactive Digital Content Is Designed To Spark Visitors’ Creativity: The London flagship of sportswear and footwear brand Adidas features a large digital display on the ground floor, called the Hype Wall, which informs shoppers of upcoming limited-edition drops and allows them to scan a code using the Adidas app in order to have a shoe’s drop date added to their calendars. The ‘Bring It To Me’ app integration innovates consumer journey to provide a unrivalled in-store experience
The store also features an interactive video game projected on the stores’ floor and walls, digital screens highlighting the brand’s current promotional campaigns and creative videos, installations and artwork from local London artists
3) MEET ME Solutions
a) Always Logged-on, customers will be in a Hyper-State of Shopping – Adidas Free Shoes via AirDrop at the Coachella Festival
Point & Click World
Shoppable Broadcasts
Near Me Shopping
Digital Drops
Adidas x Donald Glover Coachella AirDrop Festival Attendees Surprised With Free Shoes Via AirDrop:
Sportswear brand Adidas debuted new sneakers at the Coachella music festival, using Apple’s Airdrop to send randomly selected attendees a coupon for a free pair of Nizza sneakers from the brand’s collaboration with singer Donald Glover
Random iPhone users received a notification on their phones saying ‘Donald Glover would like to share a photo.’ Those who accepted the request were rewarded with a coupon and instructions on how to claim their new pair of shoes. Each pair came with a personal contract from Glover, stipulating that the lucky winners wear their shoes all weekend at the festival
b) Store Networks will offer multiple Modes, Models and Services to meet an ever-changing set of Needs – Horizm Marketplace for Brand Engagement Opportunities with its Audience
Service Marketplaces
Micro Fulfillment Centers
Digital Assets Company Horizm launched Marketplace in 2021 (https://horizm.com/marketplace/), a platform that will use artificial intelligence (AI) to allow brands to find suitable partnerships. Using an asset matching service, the platform allows brands to find effective digital audience engagement opportunities. Through Marketplace, brands will be able to identify suitable assets based on criteria such as their target audience, location, type of industry and budget
4) SERVE ME Solutions
a) Fulfillment will go beyond Speed to Delivering an Elevated level of Service and Convenience – OneASICS Membership Services – 90-day Gear Trials and Runkeeper Ecosystem
In-Step Logistics
White Glove Delivery
OneASICS Runkeeper Ecosystem – MOTIVATION AT YOUR FINGERTIPS: Follow along to audio cues and participate in virtual challenges, running groups and more—the Runkeeper app is designed to keep a customer’s runs interesting and your motivation high. It is free for everyone, with more services on Offer in the upgraded option like ASICS-developed Training Plans for getting race-ready
b) Products will be embedded with a seamless layer of Service & Experience – Nike Adventure Club
Circular Commerce
Elevated Onboarding
Passive Purchasing
Nike Adventure Club Footwear Subscriptions Makes It Easy To Buy New Shoes For Growing Kids:
In 2019, Shoewear brand Nike created a subscription service for children’s shoes, making it easy for parents to get new shoes as their children grow out of them. Members pay a flat monthly fee and can choose to receive new shoes on a monthly, bimonthly or quarterly basis, with the option to skip months or swap sneakers if they don’t fit or if their child doesn’t like them
The online site makes it easy for kids to select the style of shoe they want, from performance shoes for sporting activities to casual lifestyle styles for everyday wear. In order to make the unboxing experience more fun, Nike customizes each box with the child’s name and includes stickers and booklets with ideas for outdoor activities. However, as things stands today, this service stands discontinued – as posted on their official website. It would be interesting to learn up on what were the learnings and the roadmap there. (Yup, that’s possibly a focused Outside In post right there!)
5) VALUE ME Solutions
a) Customer/Brand Relationships become a 2-way Value Exchange – Reebok Unlocked
Tailored Rewards
Members-Only
Reciprocal Exchange
Democratized Design
Reebok Unlocked – Every Brand Interaction Lets Members Earn Points Towards Experiential Rewards:
Sportswear retailer Reebok created a tiered loyalty program that rewards members for interacting with the brand. Not only can members earn points for every dollar spent, but they can also earn points for posting to social media, reviewing products, attending events and simply creating an account. In exchange, Reebok offers personalized, experience-based rewards, including invitations to exclusive events, early access to new products, VIP customer service and on-demand training
b) Customer Service will anticipate Needs--and Shoppers will expect it – Nike and Size? Expert Service Partnership (UK)
Empowered Associates
On-Demand Support
Anticipatory Support
Sportswear brand Nike partnered with UK retailer Size? to enable Size? store associates to connect with online customers using the Hero platform in order to provide real-time assistance and advice on Nike products. Shoppers on the Size? Website can click an icon on any Nike product page to be connected to an in-store associate, enabling them to message and livestream in order to provide additional product information, stock availability, sizing guidance and styling advice. Shoppers can also book an in-store appointment for further assistance
In Conclusion
The Key Takeaways for Delivery Shopper Utility, summarized nicely, by the PSFK team, are:
References and Sources:
1. PSFK Report – The Retail Future: https://www.psfk.com/report/future-of-retail-2020
2. Curated.com Website: https://www.curated.com/company/about
3. Adidas London Store: https://www.adidas-group.com/en/media/news-archive/press-releases/2019/creating-future-london-adidas-re-imagines-retail-experience-new/
4. Adidas Free Shoes at Coachella: https://www.complex.com/sneakers/2019/04/donald-glover-airdrop-adidas-coachella
5. Nike Adventure Club: https://www.nikeadventureclub.com/
6. Reebok Unlocked: https://www.reebok.com/us/reebokunlocked
7. Nike and Size? Expert Service Partnership (UK): https://www.theindustry.fashion/size-and-nike-team-up-to-enhance-online-shopping-experience/
8. Footlocker and Nike Digital Integration: https://www.prnewswire.com/news-releases/foot-locker-unveils-washington-heights-community-power-store-300899259.html
9. Nike Live Stores: https://news.nike.com/news/nike-live-launches-in-long-beach-and-tokyo
10. Nike Live Stores Planning: https://chainstoreage.com/nike-plans-open-150-200-nike-live-style-stores-over-next-couple-years
11. Horizm Marketplace: https://www.sportspromedia.com/news/horizm-marketplace-sports-sponsorship-platform-ai-digital-inventory/
12. ASICS Runkeeper Services: https://www.asics.com/gb/en-gb/mk/runkeeper